Mayor Khan granted new licensing powers amid council row

Mayor of London Sadiq Khan has been granted new licensing powers that came into effect on Tuesday 3rd, allowing City Hall to intervene in decisions deemed 'strategically important' to the capital. The Greater London Authority (GLA) can now call in and determine applications for businesses in fee bands D and E, with a non-domestic rateable value of £87,001, where licensable activities are proposed after 11pm.

These new powers have drawn criticism from Westminster City Council, whose deputy leader, Tim Barnes, described the move as a "land grab by the mayor to try and bring control over more things into his empire rather than a use of all his powers to actually try and solve a problem," as reported by the Local Democracy Reporter. Westminster Council stated that a significant proportion of premises in their borough already fall within the scope of the new regulations due to high rateable values and late operating hours.

Concerns over 'strategic importance' definition

The cross-party group London Councils has also raised concerns, with Croydon mayor Jason Perry suggesting the definition of 'strategic importance' is "too broad." Westminster Council leader Paul Swaddle wrote to the Mayor, stating that the new call-in process would not, on its own, address wider issues in the evening and night-time economy, such as crime and noise. He argued these matters are best handled through local policies and partnership working.

Mayor Khan, speaking at an event at the Blue Note Jazz Club on Tuesday, denied carrying out a democratic "land grab" and expressed a desire to work with councils. He indicated that he would use the powers if councils were not supporting "well-managed" businesses, highlighting the night-time economy's contribution of over £21 billion to the capital's economy and its role in attracting visitors.

Kate Nicholls, chief executive of UK Hospitality, offered a different perspective, stating that the new powers are "not taking anything away from local authorities." She compared them to existing planning call-in powers and suggested there was no reason for councils like Westminster to be fearful. Nicholls advised boroughs with restrictive policies to collaborate with affected local businesses to establish appropriate frameworks.

Councils will also be required to consult the Mayor of London when reviewing their local licensing policies under the new regulations.